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Rocket Fiber's Launch Includes Second Stage 20150302-NEWS--0001-NAT-CCI-CD_-- 2/27/2015 5:29 PM Page 1 ® www.crainsdetroit.com Vol. 31, No. 9 MARCH 2 – 8, 2015 $2 a copy; $59 a year ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved Page 3 ROCKET FIBER:PHASE 1 COVERAGE AREA Panasonic unit plays ‘Taps’ ‘To chase for apps, rethinks strategy According to figures provided by Rocket the animal’ Fiber, the download times for ... “Star Wars” movie on Blu-ray: about seven hours at a typical residential Internet speed of Packard Plant owner eyes bids 10 megabits per second but about 4½ minutes at gigabit speed. for historic downtown buildings An album on iTunes: About one minute on LOOKING BACK: ’80s office residential Internet and less than a second BY KIRK PINHO at gigabit speed boom still rumbles in ’burbs CRAIN’S DETROIT BUSINESS Over breakfast at the Inn on Ferry Street in Lions invite Midtown, Fernando Palazuelo slides salt and fans to pepper shakers across the table like chess pieces. They are a representation of his Detroit take a hike real estate strategy. Yes, he says, he’s getting at new Rocket Fiber’s launch ready to make a series of big moves. The new owner of the 3.5 million-square-foot fantasy football camp Packard Plant on the city’s east side has much broader ambitions for his portfolio in the city, which first took notice of him in 2013 when he Retirement Communities bought the shuttered plant — all 47 buildings, all 40 acres — for a mere $405,000 at a Wayne includes second stage County tax foreclosure auction. Palazuelo is a native of Spain who has been developing historic but dilapidated sites in sion in the city. Rocket Fiber is preparing a pro- Peru since losing everything in the recession. posed cable-franchise agreement for approval Plans include retail He said in an interview with Crain’s last week by the Detroit City Council. No city, state or fed- that he plans to make offers to buy five of Senior housing surges as eral approvals are needed to provide the inter- electronics store, net service. See Palazuelo, Page 19 population ages, Page 11 Rocket Fiber plans in several months to training center move into about 5,000 square feet of space at This Just In 1505 Woodward, one of Dan Gilbert’s buildings, BY TOM HENDERSON after the building’s reconstruction is finished. CRAIN’S DETROIT BUSINESS The electronics store and training center ChemicoMays becomes may share a location with each other or be in here’s more than meets the eye to Rock separate buildings, said Rocket Fiber CEO subsidiary of Chemico Group Ventures LLC’s plans to install fiber-optic Marc Hudson, who hopes to have them open Southfield-based Chemico T cable to provide ultrafast Internet ac- in the second half of this year. Group of Cos. acquired the cess in downtown Detroit and Midtown. The concept of the training center is still shares previously held by In- In addition to the upcoming rollout of giga- being developed. Hudson envisions it as a dianapolis-based Mays Chemi- bit-speed Internet, which made headlines last community gathering space with a combina- cal Co. of joint venture Chemi- week, Rock Ventures’ new company, Rocket tion of training and meetings. It will not com- coMays LLC, the companies Fiber LLC, also wants to: pete with Grand Circus, one of Gilbert’s for- announced last week. Terms Ⅲ Open a retail electronics store in down- profit family of companies that offers IT were not disclosed. town Detroit. classes and computer-coding boot camps. The ChemicoMays name Ⅲ Launch a training center to help bridge Gilbert and Rock Ventures have internally will remain, but the venture the digital divide by teaching computer and financed the $30 million cost of the first phase LARRY PEPLIN will be a wholly owned sub- Internet literacy. Packard Plant owner Fernando Palazuelo wants to make offers to buy five downtown buildings. sidiary of Chemico Group of Ⅲ Become another provider of cable televi- See Rocket, Page 17 Cos., Dave MacLeod, vice presi- dent of business development and supply chain, told Crain’s in an email. Leon Richardson, founder and CEO of Chemico, will re- Rockwell Medical bets on growth of iron replacement drug main CEO of ChemicoMays. The split was amicable and BY JAY GREENE as high as $600 million over the next five Baxter Healthcare, Rockwell (Nasdaq: allows the Chemico and Mays CRAIN’S DETROIT BUSINESS years, said CEO Rob Chioini. RMTI) expects to start negotiating sales Chemical to “focus on their “This is a pretty big deal for a lot of rea- contracts and prices over the next sever- own core competencies,” After 10 years in the research and feder- sons — for our company and for the al months to leading national dialysis Chemico said in a release. al drug approval pipeline, Wixom-based 400,000 patients in the U.S. that can use companies, including DaVita Kidney Care Chemico, including the for- Rockwell Medical Inc. has received the this drug,” Chioini said. “It is a business- and U.S. Renal Care. mer joint venture, employs green light to market its Triferic drug, a changing kind of event.” Up to 25 new clinical jobs are also more than 250. ChemicoMays medication for kidney disease patients With the approval last month by the planned, due to the growth plans for the said its revenue was more who need iron replacement therapy. U.S. Food and Drug Administration and the drug. than $100 million in 2014. Triferic is expected to boost Rockwell’s recently completed marketing and distri- annual sales by at least $200 million and — Dustin Walsh bution contract with Deerfield, Ill.-based See Rockwell, Page 20 Chioini NEWSPAPER 20150302-NEWS--0002-NAT-CCI-CD_-- 2/27/2015 3:07 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS March 2, 2015 MICHIGAN BRIEFS Social Kitchen to open in Grand Past record-setting attempts have included people wearing sunglass- Rapids Downtown Market Cruise lakes from Chicago to Montreal – no, not now es in the dark, fake mustaches and Social Kitchen and Bar in Birming- chicken beaks as well as tossing ham will open a West Michigan sib- Think your job is a bear? Try selling tickets on a The company also scheduled a July 14 cruise from rubber chickens. LaughFest, which ling this year in the Grand Rapids Great Lakes cruise ship in March. That’s the task Chicago back to Montreal and another trip from runs March 5-15, honors comedian Downtown Market, MLive.com re- awaiting the recipient of the short straw at Great Chicago to Montreal departing Aug. 28. Gilda Radner, who died of ovarian ported. Lakes Cruise Co., whose land-based headquarters is The ship has 105 state rooms, considerably smaller cancer in 1989. Sklar, who opened Social Kitchen in Ann Arbor. than the floating city blocks that cruise the Ⅲ Legislation introduced in in Birmingham three years ago, Last week, the company announced it would start Caribbean. The reason, according to The Associated Congress would order the U.S. Army said his Grand Rapids restaurant offering trips between Montreal and Chicago start- Press: The Great Lakes’ lock system isn’t big enough. Corps of Engineers to take steps will feature a similar menu with up- ing July 5 on the M.S. Saint Laurent. The company’s Now that this story has arrived at the point where such as placing carbon dioxide dated décor. He said he looks for- website describes the ship as a “4-star, intimate and a reader, in the ice grip of seasonal affective disor- bubble screens and underwater ward to using the market’s vendors charming oceangoing coastal vessel.” Along the der, might be wondering, “What kind of idiot would sound cannons on the Des Plaines to stock his pantry and create new way, the freshwater love boat will stop in Sault Ste. cruise the Great Lakes?” it would be a good time to River near Chicago to keep Asian dishes. Sklar, who said he hopes to Marie, Mich., and Windsor. Arrival in Chicago is point out that the price for the trip will range from carp from reaching Lake Michigan open by ArtPrize this fall, said he ex- scheduled for July 14. So that’s nine days. Plan your $4,199 to $7,999. So the answer is, one with a great about 40 miles away, The Associat- pects to seat around 200 in the space. Dramamine accordingly. deal of, uh, liquidity. ed Press reported. Holland table maker’s expansion dation, have donated $5 million to re-establishing ties with Detroit. Ⅲ During opening night of the Find business news from Ferris’ College of Pharmacy. The Ⅲ The state recently approved a annual Gilda’s LaughFest comedy around the state at crainsdetroit promises to create 200-plus jobs gift is the largest in the Big Rapids $50 million grant to help communi- festival in Grand Rapids, organiz- .com/crainsmichiganbusiness. school’s history, The Associated ty colleges buy equipment and OMT-Veyhl USA Corp. plans a ers hope to set a record for the most Sign up for the Crain’s Michi- Press reported. Phil Hagerman is train students studying skilled 98,000-square-foot expansion at its people wearing paper crowns. The gan Morning e-newsletter at chairman and CEO of Flint-based trades, MLive.com reported. The Holland plant, MiBiz reported. The current record: 1,324, set in India. crainsdetroit.com/emailsignup. Diplomat Pharmacy Inc. The school Community College Skilled Trades manufacturer of table legs and will rename its pharmacy facility Equipment Program follows com- table bases plans to spend $8.8 mil- the Hagerman Pharmacy Building.
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